Dana Gas first-quarter profit nearly doubles as production rises

DUBAI (Bloomberg) -- Dana Gas PJSC profit nearly doubled in the first quarter as the United Arab Emirates-based natural gas producer boosted output.

Net income rose to 40 million dirhams ($11 million) from 22 million dirhams a year earlier, the company said Thursday in a statement to the Abu Dhabi stock exchange. Sales climbed 44% to 432 million dirhams.

Dana Gas, which pumps most of its gas at fields in Egypt and Iraq, is seeking to recover payments from both countries for overdue bills. The company was owed $1 billion from Egypt and the self-governed Kurdish region in northern Iraq at the end of the quarter. The receivables rose from $982 million at the end of 2016 because payments from Egypt slowed, CEO Patrick Allman-Ward said on a media conference call.

Hydrocarbon output increased 16% to 69,900 boed on increased production in Egypt, Allman-Ward said. Realized prices rose to $42/boed from $30/boed in the first three months of 2016, the company said in a statement.

New investment in Egypt will depend on the country’s ability to pay for current deliveries, the CEO said. Dana Gas is “always looking at opportunities for bringing investors in” for all of its assets, Allman-Ward said. BP Plc joined Dana Gas at an exploration project in Egypt in 2015.

Cash on hand at the end of March slumped to $289 million from $302 million at the end of 2016. The company in April repaid a $60 million loan related to a gas project in the emirate of Sharjah, where the company is based, Allman-Ward said.

Dana Gas asked bondholders this month to accept changed terms on $700 million of debt coming due in October as the company seeks to restructure borrowings for the second time in five years.